Even though most Americans rank “happiness” as the most important benchmark to feeling successful, they have a number in mind when it comes to gauging how much income it takes to feel like they’ve made it.
And it might be higher than you think.
A new national survey conducted by Empower finds the average annual salary cited by respondents as the mark of success comes in at over $270,000, though one age group set the bar considerably higher. The average response from members of Gen Z said a whopping annual income of over $587,000 was where a sense of financial success could be found. Baby boomers had a much more humble take on the income level they needed for a financial sense of wellness, citing an average annual income of just under $100,000.
But earnings actually fell lower on the list than a trio of other factors when it comes to measuring success. In the survey, just 27% ranked wealth as the highest measure of financial success. Most Americans, 59%, ranked happiness as the most important benchmark followed by the luxury of free time and physical well-being, each of which earned the top ranking from 35% of survey participants.
The Empower study is based on online survey responses from 2,203 Americans ages 18 an older fielded by Morning Consult on Sept. 13-14.
Success ‘a little serendipitous’
The study also explored Americans’ ideas about which factors are most important when it comes to achieving their goals. Hard work earned the top spot when it comes to the road to success for 84% of respondents. That was followed by talent at 65%, who you know or the network effect at 55% and 51% said it all boiled down to luck and/or circumstance.
So, how many people have already achieved their plateau of success?
Empower’s survey found that nearly half of the participants said they feel they will never achieve the level of success they’re seeking. Just 37% said they were currently feeling successful and that group was composed of more men than women at 42% to 33%, respectively. And half of respondents said they are, or expect to be, better off financially than their parents.
Rebecca Rickert, head of communications at Empower, said the survey reveals the recipe for success turns out to be a mix of ingredients.
“Fortune favors the bold, and people feel success is within their grasp with the right combination of dreaming and planning,” Rickert said in the survey report. “It’s about disciplined, smart money choices, but overall people define financial success as very meritocratic, and a little serendipitous. There’s a sense that effort and outperformance will take you far.”
The barriers to achieving personal financial success were identified as a combination of both external and internal factors.
According to the survey, more than one-third, 35%, said the economy and income instability, and irregular or insufficient income streams, 30%, are culprits, along with lack of knowledge about managing finances, 20%. Nearly a third of respondents, 28%, report the biggest obstacle to success is not setting clear financial goals. And over 1 in 4 said procrastination or delaying financial planning or decision-making gets in the way.
